The main oil refinery in Bahrain, which is operated by the Bapco Energies state-owned company, sustained damage from Iranian missiles fired from Iran during a recent escalation between both nations. The missile hit an industrial zone outside of Manama at around 1:45 AM local time on Thursday.
Based on eyewitness accounts, there was a large fireball shortly after the missile hit. However, fire crews contained the fire relatively quickly, and as of Thursday afternoon all operations were normal at the oil refinery, and no casualties have been reported at this time.
Bahrain is an important energy producer in the Gulf area, and a key part of the overall oil supply chain in the region. Officials confirmed that there was a small amount of material damage at the facility and that operations were able to continue after the attack and that there is a full investigation being done on the exact damage to infrastructure and production capacity.
Witnesses near the site heard several explosions and saw smoke rising after an air raid siren sounded in many areas of the country.
Bapco Refinery is Very Strategic to Bahrain’s Energy Supply
The refinery that was attacked is one of the largest energy facilities in Bahrain. Bapco operates the refinery and processes hundreds of thousands of barrels of crude oil every day and supplies fuels (gasoline, jet fuel, and diesel) for Bahrain’s home market and export markets.
Bapco supplies crude from Saudi Arabia through pipeline connections to the Bapco Refinery facility and therefore is a major hub in the regional energy infrastructure.
Analysts say because Bapco is a large energy facility and important within the region, if there were to be any attacks on this facility, it would have implications for supply chains and ultimately would affect the price of oil on the global market.
Read more: Dubai’s Iconic Burj Al Arab Hotel Hit By Iranian Missile Strikes
Part of Wider Regional Escalation
Iran has launched a series of missile and drone attacks throughout the Gulf region in recent days. The majority of these attacks have targeted countries with U.S. military installations or that are allied with either Israel or the U.S.
The increase in military action between Iran and the U.S.-Israeli alliance has exacerbated tensions throughout the Middle East (and the broader region). As part of this evolving confrontation, there have been attacks on or harassment of energy infrastructure, ports, and strategic military facilities throughout the Gulf.
Security analysts have expressed concern that continued attacks on energy facilities throughout the region could lead to greater escalation of conflict and create direct confrontation with additional supporting nations.
Concerns Regarding Global Energy Markets
This attack on the oil refinery in Bahrain has also raised significant questions regarding the overall stability of the world’s energy markets. Oilfields in the Gulf are responsible for a large portion of crude production and refined product supplies to the global market; thereby, disruptions in these facilities could cause considerable volatility in oil prices.
While the extent of this damage in Bahrain is minimal, continued strikes on oil facilities in the region will diminish the ability of oil-producing nations to export oil at maximum production levels, thereby impacting shipping routes and investor confidence.
Also read: US sinks Iranian warship: Another incident amidst the ongoing battle
Regional Security on High Alert
After the strike, Gulf Nations increased their security around key infrastructures and military installations. Governments have issued cautious warnings about possible further strikes, as tensions remain elevated.
Experts believe this incident shows that critical energy infrastructure is vulnerable to attack during geopolitical conflict, and the risk of a larger war in the Middle East has intensified.
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